North American Crop Protection Chemicals Market - Forecast(2023 - 2028)

North American Crop Protection Chemicals Market Overview

The North American Crop Protection Chemicals Market size is estimated to reach US$17.1 billion by 2027, after growing at a CAGR of 11.8% during the forecast period 2022-2027. Crop protection chemicals are chemical agents such as insecticides and fungicides that are utilized to control crop-harming organisms or viruses. The growing demand for medicinal plants for herbal medicine at the global level is on the rise, which is also driving the growth of the North American crop protection chemicals industry. Additionally, the growing organic food industry is focussing on increased organic food crops by utilizing crop protection chemicals such as glyphosate, azoxystrobin, pyrethroids and other chemicals to increase their yield. Owing to such factors, the demand for North American crop protection chemicals is expected to grow significantly over the forecast period. The economic downturn caused by the COVID-19 pandemic resulted in a huge drop in demand for plantation crops, floriculture and others, all across the world. This had a significant impact on the growth of the North American Crop Protection Chemicals market size.

North American Crop Protection Chemicals Market Report Coverage

The “North American Crop Protection Chemicals Market Report – Forecast (2022 - 2027)” by IndustryARC, covers an in-depth analysis of the following segments in the North American Crop Protection Chemicals industry.

Key Takeaways

• The USA dominates the North American Crop Protection Chemicals Market owing to the rising growth in the agriculture sector. In 2021, the U.S. Department of Agriculture's National Agricultural Statistics Service (NASS) estimated that the soybean area planted is estimated at 88.3 million acres, up by 1% from last year.
• Rapidly rising demand for Crop Protection Chemicals to meet the growing demand for high-quality and quantity of crops has driven the growth of the North American Crop Protection Chemicals market.
• The increasing government initiatives for the growth of the agriculture sector have been a critical factor driving the growth of the market in the upcoming years.
• However, the increasing health effects of the rising usage of Crop Protection Chemicals can hinder the growth of the North American Crop Protection Chemicals market.

Figure: North American Crop Protection Chemicals Market Revenue Share, by Country, 2021 (%)

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North American Crop Protection Chemicals Market Segment Analysis – by Type

The herbicides segment held the largest North American Crop Protection Chemicals market share in 2021 and is projected to grow at a CAGR of 11.7% during the forecast period 2022-2027. Herbicides are chemicals that inhibit the growth of weeds. They are extensively applied in weed control, which helps in increasing crop productivity and quality. Herbicides help in increasing soil fertility and crop yield and reducing soil erosion. The weed population can be controlled with the use of herbicides in agroecosystems. Herbicides can be used to increase the diversity of native species in wildlands. Herbicides are widely used in the agricultural sector and in turf management. Thus, the exhibited characteristics of herbicides make it a preferred choice over the other crop protection chemicals types, which is driving its segmental growth.

North American Crop Protection Chemicals Market Segment Analysis – by Crop Type

The horticulture segment held the largest North American Crop Protection Chemicals market share in 2021 and is estimated to grow at a CAGR of 12.4% during the forecast period 2022-2027. Crop protection chemicals such as glyphosate, azoxystrobin, pyrethroids and other chemicals are mainly applied on horticulture crops as compared to other crops such as field and plantation crops. This is due to the growing demand for high-value crops among consumers. Moreover, horticulture crops are more susceptible to pests such as fruit flies, codling moths and peach-tree borers. The growing popularity of organic crop protection products has increased the demand for crop protection chemicals among farmers. The emerging trend of consuming organic and clean-label foods is expected to boost the utilization of horticulture crops. According to the government of Canada, the Minister of Agriculture and Agri-Food announced an investment of up to US$297.3 million for the Prairie Organic Development Fund (PODF) to enable farmers to adopt best practices in organic farming production. Thus, with the growing demand for horticulture crops, the market growth for North American Crop Protection Chemicals would further rise over the forecast period.

North American Crop Protection Chemicals Market Segment Analysis – by Country

The USA held the largest North American Crop Protection Chemicals market share in 2021 up to 75%. It is due to the increasing requirement for Crop Protection Chemicals in Canada and USA. In 2022, the U.S. Department of Agriculture (USDA) announced US$250 million for the support of fertilizers, pesticides and insecticides production for American farmers to address the rising costs. Moreover, the growth of the organic food industry in the USA is driving market growth. In 2021, the U.S. Department of Agriculture’s (USDA) National Institute of Food and Agriculture (NIFA) announced an investment of over US$30 million for 33 grants that support farmers to market high-quality organic food, fiber and other organic products. Crop protection chemicals are used in agriculture and horticulture crops for controlling plant diseases and plant pathogens. Thus, the rising growth in the demand for crop protection chemicals for various crops is proving to be a market booster for the North American Crop Protection Chemicals market size in this region.

North American Crop Protection Chemicals Market Drivers

Increasing High-Quality and Quantity of Crops:

Increasing population and income have led to rising demand for high-quantity and quality crops. According to the United Nations, the world’s population is forecasted to rise from 7.7 billion in 2021 to 9.7 billion in 2050. Globally, farmers are increasing crop production, either by increasing the agricultural land to grow crops on or by improving the production of crops on existing agricultural lands, using fertilizer, pesticides, irrigation and adopting other new products. The rising demand for freshly produced, high-quality crops has increased the demand for crop protection chemicals such as glyphosate, azoxystrobin, pyrethroids and other chemicals. Thus the yield of high-quality crops is increasing. According to the United States Department of Agriculture (USDA), in 2022, Canada’s wheat production for the marketing years 2022 and 2023 is at 34.0 million metric tons (mmt), up by 3 percent from last month, 57 percent over last year and 12 percent above the 5-year average. Moreover, in Mexico, corn production increased from 27.55 million metric tons in 2021 to 27.60 million metric tons (mmt) in 2022. Thus, the growing demand for high-quality and quantity of crops would drive the growth of the North American Crop Protection Chemicals industry.

Rising Government Initiatives:

Due to the rapid increase in population in underdeveloped and developing countries, the demand for food is rising at a faster pace. This is why the governments are spending heavily on initiatives and investments in the agricultural sector. For instance, in 2020, the Canadian government invested a total of US$560 million in the Canadian Federation of Agriculture (CFA) to develop the Canadian Agri-Food Sustainability Initiative. Moreover, in 2021, the Minister of Agriculture and Agri-Food and the Minister of Environment and Climate Change announced an investment of up to US$3.9 million to Ecoation Innovative Solutions Inc. for the development of a first-of-a-kind technology that reduces the loss of crops. Thus, due to the initiatives taken by the government, agricultural production is also increasing in North America, which is driving the growth of the North American Crop Protection Chemicals market during the forecast period.

North American Crop Protection Chemicals Market Challenge

Rising Toxicity and Side-Effects of Crop Protection Chemicals:

The toxicity of Crop Protection Chemicals to humans and animals is an area of concern for the Crop Protection Chemicals industries. They are listed under the toxicity category for dermal and eye irritation allergies. Additionally, inhalation of spray mist or dust from these chemicals may cause throat irritation, coughing and sneezing. As a result, crop protection chemicals in buildings to control pest infestation and agricultural practices are highly regulated in the U.S. Moreover, the world's population is expected to grow to almost 10 billion by 2050. Therefore, in order to protect the plantations and crops yield, the use of crop protection chemicals has increased. According to the Food and Agriculture Organization (FAO), pesticide use went up by 36% between 2000 and 2019. Thus, increasing health effects with the rising usage of Crop Protection Chemicals would create hurdles for the market's growth.

North American Crop Protection Chemicals Market Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies players adopt in the North American crop protection chemicals markets. The top 10 companies in the North American Crop Protection Chemicals market are:

1. BASF SE
2. Bayer CropScience
3. Syngenta AG
4. Corteva Agriscience
5. Nufarm Ltd
6. FMC Corporation
7. Sumitomo Chemical Co., Ltd.
8. The Dow Chemical Company
9. Monsanto Company
10. Adama Agricultural Solutions Ltd.

Recent Developments

• In January 2022, Syngenta Crop Protection AG purchased two advanced bioinsecticides - UniSpore and NemaTrident, from Bionema Limited.
• In March 2021, Bayer AG launched Vynyty Citrus, an advanced bio-based crop protection chemical containing pheromone, to regulate pests on citrus crops.
• In March 2019, BASF launched Ventigra, aiming at precision-targeted pest management of piercing and sucking insects.

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